Investor relations is not about selling a deal. It’s about getting to know individual investors and solving their problems.
But what does that look like in practice? How do you connect with potential LPs and educate them around the benefits of investing in multifamily syndications?
Travis Watts is Director of Investor Education at Ashcroft Capital. He got his start in real estate in 2009, investing in single family and short-term rentals.
Travis became a passive investor with Ashcroft several years ago and was so impressed with their performance that he offered to join the Investor Relations Team in 2019.
On this episode of Financial Freedom with Real Estate Investing, Travis joins Garrett and me to explain why he transitioned from active investing in single family to passive investing in syndications.
Travis describes how he attracts new investors at Ashcroft and walks us through the pros and cons of raising capital through a fund.
Listen in for Travis’ best practices for taking care of investors and learn how to serve your LPs and solve their problems to grow your syndication business.
Travis Watts – Key Takeaways
How Travis got started investing in syndications
- Burned out on active investing in single family
- Learned about private placements at Meetup
Why Travis started investing in multifamily
- Time freedom for family, friends and travel
- Wanted to have life vs. live to work
How Travis came to work at Ashcroft Capital
- Roles at brokerage house, syndication startup
- LP on many Ashcroft deals over the years
- Offered to step in when founder started family
Travis’ best practices for taking care of investors
- Be solutions-oriented, not a salesperson
- Build out team to provide white glove service
- Connect at Road Show property tours
How Travis attracts new investors to Ashcroft Capital
- In-person events and webinars
- Move to 506(c) to advertise deals
- Lower minimum investment to $25K
The pros and cons of raising capital through a fund
- Harder to create urgency but more efficient
- Don’t lose investors because of liquidity
- Dip toe in at $25K, invest more over time
- Investors need more trust in operator
Travis’ advice to syndicators trying to grow a business
- Get your story out there
- Get to know people before offering deal
- Be solutions-oriented vs. pushing product
- Under promise and overdeliver
- Be available and responsive
Connect with Travis Watts
Connect with Michael Blank
Email [email protected]